2022 (12) TMI 937

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....e raised several grounds contending the revisionary proceedings u/s. 263 on merits. The assessee also raised additional grounds before us contending the issue on legal grounds. The ld. AR during the course of hearing submitted that if the legal issue contended in additional gorund No.2 is adjudicated, the rest of the grounds including the other additional grounds become academic. Accordingly we first proceed to adjudicate the additional ground No.2, which reads as follows;- "2. The learned Pr. Commissioner of Income Tax is not justified in assuming jurisdiction under section 263 of the Act in respect of issues which are not arising out of incriminating material found during the course of search, in as much as, the year for which th....

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....he details with respect to the following items- 1. Loss on account of write off of fixed assets due to closure of Jalandhar Restaurant. 2. Expenditure claimed as fees paid to Sayajji Hotels Ltd. on which tax was not deducted. 5. The PCIT issued show cause notice to the assessee in this regard for which the assessee made submissions. The PCIT did not accept the contentions of the assessee and to extent of the above two items the PCIT treated the order of assessment as erroneous and prejudicial to the interests of the revenue and therefore set aside the order of assessment passed by the AO by invoking clause (a) to Explanation 2 to section 263. The assessee is in appeals before the Tribunal aggrieved by the order of the P....

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....addition can be made in the assessment proceedings u/s. 153A of the Act on account of absence of incriminating material with respect to the issues examined by the PCIT, the question of invoking the jurisdiction u/s. 263 does not arise. The issues examined by the PCIT are part of Profit & Loss Account as has been admitted by the PCIT in his order and are not arising out of incriminating material. Therefore, it is submitted that the order passed u/s. 263 of the Act is liable to be quashed. 9. The ld. DR relied on the order of the PCIT. 10. We have heard the rival submissions and perused the material on record. In the present case, the assessment in AYs 2012-13 and 2013- 14 have been completed u/s.143(3) is completed prior to the date of....